| 1 | Representative Robaina offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between lines 1528 and 1529, insert: |
| 5 | Section 10. Subsection (16) of section 718.103, Florida |
| 6 | Statutes, is amended to read: |
| 7 | 718.103 Definitions.--As used in this chapter, the term: |
| 8 | (16) "Developer" means a person who creates a condominium |
| 9 | or offers condominium parcels for sale or lease in the ordinary |
| 10 | course of business, but does not include: |
| 11 | (a) An owner or lessee of a condominium or cooperative |
| 12 | unit who has acquired the unit for his or her own occupancy;, |
| 13 | nor does it include |
| 14 | (b) A cooperative association which creates a condominium |
| 15 | by conversion of an existing residential cooperative after |
| 16 | control of the association has been transferred to the unit |
| 17 | owners if, following the conversion, the unit owners will be the |
| 18 | same persons who were unit owners of the cooperative and no |
| 19 | units are offered for sale or lease to the public as part of the |
| 20 | plan of conversion;. |
| 21 | (c) A bulk assignee or bulk buyer as defined in s. |
| 22 | 718.703; or |
| 23 | (d) A state, county, or municipal entity is not a |
| 24 | developer for any purposes under this act when it is acting as a |
| 25 | lessor and not otherwise named as a developer in the declaration |
| 26 | of condominium association. |
| 27 | Section 11. Subsection (1) of section 718.301, Florida |
| 28 | Statutes, is amended to read: |
| 29 | 718.301 Transfer of association control; claims of defect |
| 30 | by association.-- |
| 31 | (1) When unit owners other than the developer own 15 |
| 32 | percent or more of the units in a condominium that will be |
| 33 | operated ultimately by an association, the unit owners other |
| 34 | than the developer shall be entitled to elect no less than one- |
| 35 | third of the members of the board of administration of the |
| 36 | association. Unit owners other than the developer are entitled |
| 37 | to elect not less than a majority of the members of the board of |
| 38 | administration of an association: |
| 39 | (a) Three years after 50 percent of the units that will be |
| 40 | operated ultimately by the association have been conveyed to |
| 41 | purchasers; |
| 42 | (b) Three months after 90 percent of the units that will |
| 43 | be operated ultimately by the association have been conveyed to |
| 44 | purchasers; |
| 45 | (c) When all the units that will be operated ultimately by |
| 46 | the association have been completed, some of them have been |
| 47 | conveyed to purchasers, and none of the others are being offered |
| 48 | for sale by the developer in the ordinary course of business; |
| 49 | (d) When some of the units have been conveyed to |
| 50 | purchasers and none of the others are being constructed or |
| 51 | offered for sale by the developer in the ordinary course of |
| 52 | business; |
| 53 | (e) When the developer files a petition seeking protection |
| 54 | in bankruptcy; |
| 55 | (f) When a receiver for the developer is appointed by a |
| 56 | circuit court and is not discharged within 30 days after such |
| 57 | appointment, unless the court determines within 30 days after |
| 58 | appointment of the receiver that transfer of control would be |
| 59 | detrimental to the association or its members; or |
| 60 | (g) Seven years after recordation of the declaration of |
| 61 | condominium; or, in the case of an association which may |
| 62 | ultimately operate more than one condominium, 7 years after |
| 63 | recordation of the declaration for the first condominium it |
| 64 | operates; or, in the case of an association operating a phase |
| 65 | condominium created pursuant to s. 718.403, 7 years after |
| 66 | recordation of the declaration creating the initial phase, |
| 67 |
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| 68 | whichever occurs first. The developer is entitled to elect at |
| 69 | least one member of the board of administration of an |
| 70 | association as long as the developer holds for sale in the |
| 71 | ordinary course of business at least 5 percent, in condominiums |
| 72 | with fewer than 500 units, and 2 percent, in condominiums with |
| 73 | more than 500 units, of the units in a condominium operated by |
| 74 | the association. Following the time the developer relinquishes |
| 75 | control of the association, the developer may exercise the right |
| 76 | to vote any developer-owned units in the same manner as any |
| 77 | other unit owner except for purposes of reacquiring control of |
| 78 | the association or selecting the majority members of the board |
| 79 | of administration. |
| 80 | Section 12. Part VII of chapter 718, Florida Statutes, |
| 81 | consisting of sections 718.701, 718.702, 718.703, 718.704, |
| 82 | 718.705, 718.706, 718.707, and 718.708, is created to read: |
| 83 | 718.701 Short title.--This part may be cited as the |
| 84 | "Distressed Condominium Relief Act." |
| 85 | 718.702 Legislative intent.-- |
| 86 | (1) The Legislature acknowledges the massive downturn in |
| 87 | the condominium market which has transpired throughout the state |
| 88 | and the impact of such downturn on developers, lenders, unit |
| 89 | owners, and condominium associations. Numerous condominium |
| 90 | projects have either failed or are in the process of failing, |
| 91 | whereby the condominium has a small percentage of third-party |
| 92 | unit owners as compared to the unsold inventory of units. As a |
| 93 | result of the inability to find purchasers for this inventory of |
| 94 | units, which results in part from the devaluing of real estate |
| 95 | in this state, developers are unable to satisfy the requirements |
| 96 | of their lenders, leading to defaults on mortgages. |
| 97 | Consequently, lenders are faced with the task of finding a |
| 98 | solution to the problem in order to be paid for their |
| 99 | investments. |
| 100 | (2) The Legislature recognizes that all of the factors |
| 101 | listed in this section lead to condominiums becoming distressed, |
| 102 | resulting in detriment to the unit owners and the condominium |
| 103 | association on account of the resulting shortage of assessment |
| 104 | moneys available to support the financial requirements for |
| 105 | proper maintenance of the condominium. Such shortage and the |
| 106 | resulting lack of proper maintenance further erodes property |
| 107 | values. The Legislature finds that individuals and entities |
| 108 | within Florida and in other states have expressed interest in |
| 109 | purchasing unsold inventory in one or more condominium projects, |
| 110 | but are reticent to do so because of accompanying liabilities |
| 111 | inherited from the original developer, which are by definition |
| 112 | imputed to the successor purchaser, including a foreclosing |
| 113 | mortgagee. This results in the potential purchaser having |
| 114 | unknown and unquantifiable risks, and potential successor |
| 115 | purchasers are unwilling to accept such risks. The result is |
| 116 | that condominium projects stagnate, leaving all parties involved |
| 117 | at an impasse without the ability to find a solution. |
| 118 | (3) The Legislature finds and declares that it is the |
| 119 | public policy of this state to protect the interests of |
| 120 | developers, lenders, unit owners, and condominium associations |
| 121 | with regard to distressed condominiums, and that there is a need |
| 122 | for relief from certain provisions of the Florida Condominium |
| 123 | Act geared toward enabling economic opportunities within these |
| 124 | condominiums for successor purchasers, including foreclosing |
| 125 | mortgagees. Such relief would benefit existing unit owners and |
| 126 | condominium associations. The Legislature further finds and |
| 127 | declares that this situation cannot be open-ended without |
| 128 | potentially prejudicing the rights of unit owners and |
| 129 | condominium associations, and thereby declares that the |
| 130 | provisions of this part shall be used by purchasers of |
| 131 | condominium inventory for a specific and defined period. |
| 132 | 718.703 Definitions.--As used in this part, the term: |
| 133 | (1) "Bulk assignee" means a person who: |
| 134 | (a) Acquires more than seven condominium parcels as set |
| 135 | forth in s. 718.707; and |
| 136 | (b) Receives an assignment of some or all of the rights of |
| 137 | the developer as are set forth in the declaration of condominium |
| 138 | or in this chapter by a written instrument recorded as an |
| 139 | exhibit to the deed or as a separate instrument in the public |
| 140 | records of the county in which the condominium is located. |
| 141 | (2) "Bulk buyer" means a person who acquires more than |
| 142 | seven condominium parcels as set forth in s. 718.707 but who |
| 143 | does not receive an assignment of any developer rights other |
| 144 | than the right to conduct sales, leasing, and marketing |
| 145 | activities within the condominium. |
| 146 | 718.704 Assignment and assumption of developer rights by |
| 147 | bulk assignee; bulk buyer.-- |
| 148 | (1) A bulk assignee shall be deemed to have assumed and is |
| 149 | liable for all duties and responsibilities of the developer |
| 150 | under the declaration and this chapter, except: |
| 151 | (a) Warranties of the developer under s. 718.203(1) or s. |
| 152 | 718.618, except for design, construction, development, or repair |
| 153 | work performed by or on behalf of such bulk assignee; |
| 154 | (b) The obligation to: |
| 155 | 1. Fund converter reserves under s. 718.618 for a unit |
| 156 | which was not acquired by the bulk assignee; or |
| 157 | 2. Provide converter warranties on any portion of the |
| 158 | condominium property except as may be expressly provided by the |
| 159 | bulk assignee in the contract for purchase and sale executed |
| 160 | with a purchaser and pertaining to any design, construction, |
| 161 | development, or repair work performed by or on behalf of the |
| 162 | bulk assignee; |
| 163 | (c) The requirement to provide the association with a |
| 164 | cumulative audit of the association's finances from the date of |
| 165 | formation of the condominium association as required by s. |
| 166 | 718.301. However, the bulk assignee shall provide an audit for |
| 167 | the period for which the bulk assignee elects a majority of the |
| 168 | members of the board of administration; |
| 169 | (d) Any liability arising out of or in connection with |
| 170 | actions taken by the board of administration or the developer- |
| 171 | appointed directors before the bulk assignee elects a majority |
| 172 | of the members of the board of administration; and |
| 173 | (e) Any liability for or arising out of the developer's |
| 174 | failure to fund previous assessments or to resolve budgetary |
| 175 | deficits in relation to a developer's right to guarantee |
| 176 | assessments, except as otherwise provided in subsection (2). |
| 177 |
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| 178 | Further, the bulk assignee is responsible for delivering |
| 179 | documents and materials in accordance with s. 718.705(3). A bulk |
| 180 | assignee may expressly assume some or all of the obligations of |
| 181 | the developer described in paragraphs (a)-(e). |
| 182 | (2) A bulk assignee receiving the assignment of the rights |
| 183 | of the developer to guarantee the level of assessments and fund |
| 184 | budgetary deficits pursuant to s. 718.116 shall be deemed to |
| 185 | have assumed and is liable for all obligations of the developer |
| 186 | with respect to such guarantee, including any applicable funding |
| 187 | of reserves to the extent required by law, for as long as the |
| 188 | guarantee remains in effect. A bulk assignee not receiving an |
| 189 | assignment of the right of the developer to guarantee the level |
| 190 | of assessments and fund budgetary deficits pursuant to s. |
| 191 | 718.116 or a bulk buyer is not deemed to have assumed and is not |
| 192 | liable for the obligations of the developer with respect to such |
| 193 | guarantee, but is responsible for payment of assessments in the |
| 194 | same manner as all other owners of condominium parcels. |
| 195 | (3) A bulk buyer is liable for the duties and |
| 196 | responsibilities of the developer under the declaration and this |
| 197 | chapter only to the extent provided in this part, together with |
| 198 | any other duties or responsibilities of the developer expressly |
| 199 | assumed in writing by the bulk buyer. |
| 200 | (4) An acquirer of condominium parcels is not considered a |
| 201 | bulk assignee or a bulk buyer if the transfer to such acquirer |
| 202 | was made with the intent to hinder, delay, or defraud any |
| 203 | purchaser, unit owner, or the association, or if the acquirer is |
| 204 | a person who would constitute an insider under s. 726.102(7). |
| 205 | (5) An assignment of developer rights to a bulk assignee |
| 206 | may be made by the developer, a previous bulk assignee, or a |
| 207 | court of competent jurisdiction acting on behalf of the |
| 208 | developer or the previous bulk assignee. At any particular time, |
| 209 | there may be no more than one bulk assignee within a |
| 210 | condominium, but there may be more than one bulk buyer. If more |
| 211 | than one acquirer of condominium parcels receives an assignment |
| 212 | of developer rights from the same person, the bulk assignee is |
| 213 | the acquirer whose instrument of assignment is recorded first in |
| 214 | applicable public records. |
| 215 | 718.705 Board of administration; transfer of control.-- |
| 216 | (1) For purposes of determining the timing for transfer of |
| 217 | control of the board of administration of the association to |
| 218 | unit owners other than the developer under ss. 718.301(1)(a) and |
| 219 | (b), if a bulk assignee is entitled to elect a majority of the |
| 220 | members of the board, a condominium parcel acquired by the bulk |
| 221 | assignee shall not be deemed to be conveyed to a purchaser, or |
| 222 | to be owned by an owner other than the developer, until such |
| 223 | condominium parcel is conveyed to an owner who is not a bulk |
| 224 | assignee. |
| 225 | (2) Unless control of the board of administration of the |
| 226 | association has already been relinquished pursuant to s. |
| 227 | 718.301(1), the bulk assignee is obligated to relinquish control |
| 228 | of the association in accordance with s. 718.301 and this part. |
| 229 | (3) When a bulk assignee relinquishes control of the board |
| 230 | of administration as set forth in s. 718.301, the bulk assignee |
| 231 | shall deliver all of those items required by s. 718.301(4). |
| 232 | However, the bulk assignee is not required to deliver items and |
| 233 | documents not in the possession of the bulk assignee during the |
| 234 | period during which the bulk assignee was the owner of |
| 235 | condominium parcels. In conjunction with acquisition of |
| 236 | condominium parcels, a bulk assignee shall undertake a good |
| 237 | faith effort to obtain the documents and materials required to |
| 238 | be provided to the association pursuant to s. 718.301(4). To the |
| 239 | extent the bulk assignee is not able to obtain all of such |
| 240 | documents and materials, the bulk assignee shall certify in |
| 241 | writing to the association the names or descriptions of the |
| 242 | documents and materials that were not obtainable by the bulk |
| 243 | assignee. Delivery of the certificate relieves the bulk assignee |
| 244 | of responsibility for the delivery of the documents and |
| 245 | materials referenced in the certificate as otherwise required |
| 246 | under ss. 718.112 and 718.301 and this part. The responsibility |
| 247 | of the bulk assignee for the audit required by s. 718.301(4) |
| 248 | shall commence as of the date on which the bulk assignee elected |
| 249 | a majority of the members of the board of administration. |
| 250 | (4) If a conflict arises between the provisions or |
| 251 | application of this section and s. 718.301, this section shall |
| 252 | prevail. |
| 253 | (5) Failure of a bulk assignee or bulk buyer to comply |
| 254 | with all the requirements contained in this part shall result in |
| 255 | the loss of any and all protections or exemptions provided under |
| 256 | this part. |
| 257 | 718.706 Specific provisions pertaining to offering of |
| 258 | units by a bulk assignee or bulk buyer.-- |
| 259 | (1) Before offering any units for sale or for lease for a |
| 260 | term exceeding 5 years, a bulk assignee or a bulk buyer shall |
| 261 | file the following documents with the division and provide such |
| 262 | documents to a prospective purchaser: |
| 263 | (a) An updated prospectus or offering circular, or a |
| 264 | supplement to the prospectus or offering circular, filed by the |
| 265 | creating developer prepared in accordance with s. 718.504, which |
| 266 | shall include the form of contract for purchase and sale in |
| 267 | compliance with s. 718.503(2); |
| 268 | (b) An updated Frequently Asked Questions and Answers |
| 269 | sheet; |
| 270 | (c) The executed escrow agreement if required under s. |
| 271 | 718.202; and |
| 272 | (d) The financial information required by s. 718.111(13). |
| 273 | However, if a financial information report does not exist for |
| 274 | the fiscal year before acquisition of title by the bulk assignee |
| 275 | or bulk buyer, or accounting records cannot be obtained in good |
| 276 | faith by the bulk assignee or the bulk buyer which would permit |
| 277 | preparation of the required financial information report, the |
| 278 | bulk assignee or bulk buyer is excused from the requirement of |
| 279 | this paragraph. However, the bulk assignee or bulk buyer must |
| 280 | include in the purchase contract the following statement in |
| 281 | conspicuous type: |
| 282 | THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S. |
| 283 | 718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR OF THE |
| 284 | ASSOCIATION IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER |
| 285 | AS A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE |
| 286 | ASSOCIATION. |
| 287 | (2) Before offering any units for sale or for lease for a |
| 288 | term exceeding 5 years, a bulk assignee shall file with the |
| 289 | division and provide to a prospective purchaser a disclosure |
| 290 | statement that must include, but is not limited to: |
| 291 | (a) A description to the purchaser of any rights of the |
| 292 | developer which have been assigned to the bulk assignee; |
| 293 | (b) The following statement in conspicuous type: |
| 294 | SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE DEVELOPER |
| 295 | UNDER S. 718.203(1) OR S. 718.618, AS APPLICABLE, EXCEPT FOR |
| 296 | DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY |
| 297 | OR ON BEHALF OF SELLER; and |
| 298 | (c) If the condominium is a conversion subject to part VI, |
| 299 | the following statement in conspicuous type: |
| 300 | SELLER HAS NO OBLIGATION TO FUND CONVERTER RESERVES OR TO |
| 301 | PROVIDE CONVERTER WARRANTIES UNDER S. 718.618 ON ANY PORTION OF |
| 302 | THE CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY REQUIRED OF |
| 303 | THE SELLER IN THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE |
| 304 | SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO ANY DESIGN, |
| 305 | CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON |
| 306 | BEHALF OF THE SELLER. |
| 307 | (3) In addition to the requirements set forth in |
| 308 | subsection (1), a bulk assignee or bulk buyer must comply with |
| 309 | the nondeveloper disclosure requirements set forth in s. |
| 310 | 718.503(2) before offering any units for sale or for lease for a |
| 311 | term exceeding 5 years. |
| 312 | (4) A bulk assignee, while it is in control of the board |
| 313 | of administration of the association, may not authorize, on |
| 314 | behalf of the association: |
| 315 | (a) The waiver of reserves or the reduction of funding of |
| 316 | the reserves in accordance with s. 718.112(2)(f)2., unless |
| 317 | approved by a majority of the voting interests not controlled by |
| 318 | the developer, bulk assignee, and bulk buyer; or |
| 319 | (b) The use of reserve expenditures for other purposes in |
| 320 | accordance with s. 718.112(2)(f)3., unless approved by a |
| 321 | majority of the voting interests not controlled by the |
| 322 | developer, bulk assignee, and bulk buyer. |
| 323 | (5) A bulk assignee, while it is in control of the board |
| 324 | of administration of the association, shall comply with the |
| 325 | requirements imposed upon developers to transfer control of the |
| 326 | association to the unit owners in accordance with s. 718.301. |
| 327 | (6) A bulk assignee or a bulk buyer shall comply with all |
| 328 | the requirements of s. 718.302 regarding any contracts entered |
| 329 | into by the association during the period the bulk assignee or |
| 330 | bulk buyer maintains control of the board of administration. |
| 331 | Unit owners shall be afforded all the protections contained in |
| 332 | s. 718.302 regarding agreements entered into by the association |
| 333 | before unit owners other than the developer, bulk assignee, or |
| 334 | bulk buyer elected a majority of the board of administration. |
| 335 | (7) A bulk buyer shall comply with the requirements |
| 336 | contained in the declaration regarding any transfer of a unit, |
| 337 | including sales, leases, and subleases. A bulk buyer is not |
| 338 | entitled to any exemptions afforded a developer or successor |
| 339 | developer under this chapter regarding any transfer of a unit, |
| 340 | including sales, leases, or subleases. |
| 341 | 718.707 Time limitation for classification as bulk |
| 342 | assignee or bulk buyer.--A person acquiring condominium parcels |
| 343 | may not be classified as a bulk assignee or bulk buyer unless |
| 344 | the condominium parcels were acquired before July 1, 2011. The |
| 345 | date of such acquisition shall be determined by the date of |
| 346 | recording of a deed or other instrument of conveyance for such |
| 347 | parcels in the public records of the county in which the |
| 348 | condominium is located, or by the date of issuance of a |
| 349 | certificate of title in a foreclosure proceeding with respect to |
| 350 | such condominium parcels. |
| 351 | 718.708 Liability of developers and others.--An assignment |
| 352 | of developer rights to a bulk assignee or bulk buyer does not |
| 353 | release the developer from any liabilities under the declaration |
| 354 | or this chapter. This part does not limit the liability of the |
| 355 | developer for claims brought by unit owners, bulk assignees, or |
| 356 | bulk buyers for violations of this chapter by the developer, |
| 357 | unless specifically excluded in this part. Nothing contained |
| 358 | within this part waives, releases, compromises, or limits the |
| 359 | liability of contractors, subcontractors, materialmen, |
| 360 | manufacturers, architects, engineers, or any participant in the |
| 361 | design or construction of a condominium for any claim brought by |
| 362 | an association, unit owners, bulk assignees, or bulk buyers |
| 363 | arising from the design of the condominium, construction |
| 364 | defects, misrepresentations associated with condominium |
| 365 | property, or violations of this chapter, unless specifically |
| 366 | excluded in this part. |
| 367 |
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| 368 |
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| 369 |
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| 370 | ----------------------------------------------------- |
| 371 | T I T L E A M E N D M E N T |
| 372 | Remove line 65 and insert: |
| 373 | agreements and arbitration awards; amending s. 718.103, F.S.; |
| 374 | expanding the definition of "developer" to include a bulk |
| 375 | assignee or bulk buyer; amending s. 718.301, F.S.; revising |
| 376 | conditions under which unit owners other than the developer may |
| 377 | elect not less than a majority of the members of the board of |
| 378 | administration of an association; creating part VII of ch. 718, |
| 379 | F.S.; providing a short title; providing legislative findings |
| 380 | and intent; defining the terms "bulk assignee" and "bulk buyer"; |
| 381 | providing for the assignment of developer rights by a bulk |
| 382 | assignee; specifying liabilities of bulk assignees and bulk |
| 383 | buyers; providing exceptions; providing additional |
| 384 | responsibilities of bulk assignees and bulk buyers; authorizing |
| 385 | certain entities to assign developer rights to a bulk assignee; |
| 386 | limiting the number of bulk assignees at any given time; |
| 387 | providing for the transfer of control of a board of |
| 388 | administration; providing effects of such transfer on parcels |
| 389 | acquired by a bulk assignee; providing obligations of a bulk |
| 390 | assignee upon the transfer of control of a board of |
| 391 | administration; requiring that a bulk assignee certify certain |
| 392 | information in writing; providing for the resolution of a |
| 393 | conflict between specified provisions of state law; providing |
| 394 | that the failure of a bulk assignee or bulk buyer to comply with |
| 395 | specified provisions of state law results in the loss of certain |
| 396 | protections and exemptions; requiring that a bulk assignee or |
| 397 | bulk buyer file certain information with the Division of Florida |
| 398 | Condominiums, Timeshares, and Mobile Homes of the Department of |
| 399 | Business and Professional Regulation before offering any units |
| 400 | for sale or lease in excess of a specified term; requiring that |
| 401 | a copy of such information be provided to a prospective |
| 402 | purchaser; requiring that certain contracts and disclosure |
| 403 | statements contain specified statements; requiring that a bulk |
| 404 | assignee or bulk buyer comply with certain disclosure |
| 405 | requirements; prohibiting a bulk assignee from taking certain |
| 406 | actions on behalf of an association while the bulk assignee is |
| 407 | in control of the board of administration of the association and |
| 408 | requiring that such bulk assignee comply with certain |
| 409 | requirements; requiring that a bulk assignee or bulk buyer |
| 410 | comply with certain requirements regarding certain contracts; |
| 411 | providing unit owners with specified protections regarding |
| 412 | certain contracts; requiring that a bulk buyer comply with |
| 413 | certain requirements regarding the transfer of a unit; |
| 414 | prohibiting a person from being classified as a bulk assignee or |
| 415 | bulk buyer unless condominium parcels were acquired before a |
| 416 | specified date; providing for the determination of the date of |
| 417 | acquisition of a parcel; providing that the assignment of |
| 418 | developer rights to a bulk assignee does not release a developer |
| 419 | from certain liabilities; preserving certain liabilities for |
| 420 | certain parties; providing an effective |